Fitch rates Baskent Elektrik AA(tur)

Fitch Ratings said it assigned Baskent Elektrik Dagitim AS’s national long-term rating of AA(tur) with a stable outlook.

The rating is supported by the regulated nature of the company's operations, predictable operating cash flows and experienced shareholders, Fitch said.

The agency said it views the current regulatory regime as favorable for investments, but uncertainty remains about profitability once capital expenditure slows down.

Baskent does not own the infrastructure assets and its investments in the grid are treated as financial assets, recoverable in 10 years, with an attractive real rate of return, Fitch said.

Electricity distribution in Turkey is in its third regulatory period, which started in 2016, offering good visibility until 2020, the agency said.

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